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  1. #11
    Gold Member
    Join Date
    Jul 2011
    Posts
    442
    Location
    SW Arkansas
    Tractor
    Rusty junk

    Default Re: Zero percent financing

    Cash price is ALWAYS lower than financed, even at 0% apr.

  2. #12
    Gold Member BuzzardA91's Avatar
    Join Date
    Jul 2012
    Posts
    354
    Location
    West Granby CT
    Tractor
    JD 4105. 375 Backhoe. 2005 Polaris Ranger

    Default Re: Zero percent financing

    Cash price is always better is mostly correct. The exception is right now JD offers 48 months at zero percent. The dealers don't get charged for this financing so the cash and 0% price is the same. If you take 60 or 72 months then the cash price would be cheaper because those 0% plans carry a fee to the dealer selling the tractor.

  3. #13
    Super Star Member
    Join Date
    Oct 2004
    Posts
    16,854
    Location
    First organized permanent settlement in the northwest territory
    Tractor
    2003 Kubota BX1500/2004 Kubota Bx23/2005 Kubota BX1500

    Default Re: Zero percent financing

    Quote Originally Posted by wildwoodford View Post
    Have a buddy thats a salesman for deere. After a few toddies he let it slip that 0% financing is just a numbers gimic. They just up the msrp price to get the same final figures
    Quote Originally Posted by s219 View Post
    Not true in my experience.
    Same in my case .Cash or finance same dollar.
    Quote Originally Posted by PoorPlowboy View Post
    Cash price is ALWAYS lower than financed, even at 0% apr.
    I don't see how 15500 was 15500 for my BX financing or no financing .
    Tractors 2003 Kubota BX1500 / 2004 Kubota Bx23 / 2005 Kubota BX1500.
    Attachments 60'' Front Blade/48'' Rear Tiller/FEL/Back Hoe /
    60'' MMM/Clamp on Forks/48'' MMM
    South of Canton Ohio L .B

  4. #14
    Veteran Member KennyG's Avatar
    Join Date
    Jan 2011
    Posts
    1,106
    Location
    SW Michigan
    Tractor
    John Deere 2320

    Default Re: Zero percent financing

    Quote Originally Posted by PoorPlowboy View Post
    Cash price is ALWAYS lower than financed, even at 0% apr.
    When I bought my 2320 I asked if they cared whether I paid cash or took the 0% for 36 month deal. The dealer didn't care because, for up to 36 months, JD did the financing and they got cash either way. If I wanted to finance over 36 months, it would have made a difference because the dealer had to contribute on that deal. Ask the dealer and he will tell you - it's his money in the deal also.

  5. #15
    New Member Leroy454's Avatar
    Join Date
    Dec 2010
    Posts
    13
    Location
    Abilene, TX

    Default Re: Zero percent financing

    Quote Originally Posted by BuzzardA91 View Post
    Cash price is always better is mostly correct. The exception is right now JD offers 48 months at zero percent. The dealers don't get charged for this financing so the cash and 0% price is the same. If you take 60 or 72 months then the cash price would be cheaper because those 0% plans carry a fee to the dealer selling the tractor.
    Correct. Most all models have an advertised "no charge" finance incentive of 0% interest for a given term. Some models currently have 0% for 60 months without extra finance charges. With no fee to use these finance plans, cash and zero percent price can be the same at times. The only addition will be the usual "origination and official" fees associated with some finance notes.

    Some finance options like 0% for 72 months do have an extra dealer charge that has to be accounted for, but may be worth the extra cost depending your payment goals. It just depends on the current incentives, which usually expire and renew quarterly.

  6. #16
    Elite Member
    Join Date
    Dec 2003
    Posts
    4,841
    Location
    NC
    Tractor
    Kubota Grand L3830

    Default Re: Zero percent financing

    I really love good advertisement. There is no such thing as a free lunch. Manufactures determine the default percentage rate on financed cars, trucks, tractors, etc. They then determine what it would cost to self Finance or have a underwriter finance per one thousand dollars.

    They then factor in the default rate, company established finance rate and projected profit margin and price items accordingly.

    The manufacture then lures customers by saying, z¸ero Percent Financing? Sign on the dotted line and we will sell you a $40,000 dollar unit, finance it for you for four years and you pay no interest. Come on now. The manufacture cannot stay in business by giving his products or money away. When we purchase something with a zero percent loan, the total cost, financing included is front end loaded. I am not referring to the loader on a tractor either.

    Each year as the variables used by a manufacture, loan defaults, material and other costs change, prices are adjusted accordingly to insure the manufacture continues to meet the monetary growth percentage goals established by the Board of Directors.

    Each year when asked about price increased dealers then respond with, steel Prices or new Emission Standards or CAFE Standards Changed? etc.

    I long for a return to the good Ole Days of no zero percent financing gimmicks. When one made a purchase they were charged a reasonable finance rate, the economy was strong, the middle class was making a decent living wage and unemployment was at a manageable number.

    I will venture to say the CEO who figured out how to market zero percent sales is still receiving a substantial yearly bonus.

    I immediately walk away from making a purchase when told, "CASH PRICE SAME AS FINANCED".
    Last edited by Gator6x4; 11-29-2012 at 03:22 PM.

  7. #17
    Gold Member dntfxr's Avatar
    Join Date
    Aug 2007
    Posts
    335
    Location
    north Louisiana
    Tractor
    Ford/NH, Kubota

    Default

    I'm in the car business and I understand the numbers game but there are times when better deals are available. Those times the manufacturers and dealers are still making profits. But when you find an old new stock unit that needs to be moved and you can get zero percent it's a win win.
    '95 Ford/NH 3930 mfwd
    '83 Ford 3610
    '94 Kubota B7100 mfwd HST
    '14 Ferris is700 61" Vanguard BB

  8. #18
    Advertiser sweettractors's Avatar
    Join Date
    Jul 2003
    Posts
    7,150
    Location
    Central Kentucky
    Tractor
    JD 6403 CHA-JD 3130 CHA

    Default Re: Zero percent financing

    Cost of 0% financing is built into the Pricing/MSRP. If you don't use it, you can buy for less $. Ken Sweet
    http://www.sweetfarms.com/

    Sweet Farm Equipment LLC (Internet Sales, Shipping All States)
    Shipping Facility
    1815 Defries Rd., Canmer, Ky 42722 Toll Free 1-866-528-3323
    Ken Sweet sweet@scrtc.com

    Shipping Example: Can ship 800 lbs from Ky. to Dallas for $165
    The Northeast shipping corridor is a little more expensive.

  9. #19
    Veteran Member yelbike's Avatar
    Join Date
    Nov 2011
    Posts
    1,425
    Location
    Near Winnipeg, Mb, Canada
    Tractor
    John Deere 2305, 2320,Z465

    Default

    Quote Originally Posted by BuzzardA91
    Sorry wildeoodford, just saw that you were Canadian. Can't speak on that market up there but false down here anyhow.
    Up here in Canada, jd dealer look at msrp than add points on top of it. I had an american dealer laugh with me about it. Down south, your dealers look at msrp and discount according to local competition. That's why my jd 2305 can from south of the border.
    Carefull what you aim for, Aim for nothing and you will achieve it with amazing accuracy.

  10. #20
    Bronze Member
    Join Date
    Dec 2012
    Posts
    83
    Location
    Western NC
    Tractor
    green

    Default

    My experience with recent purchase of 5085 M reflected cash price same as 0% for 48 mos. 60 mos at 0% cost another $1000 but the 48 month deal was same as cash. Even at 0% financing, Deere moves equipment and realizes cash flow. Those that are afraid of a good deal can just get a cash quote, then choose finance option that works.
    *JD 5085M *JD 6110 w 640 loader *JD 6330 *AC F2 Gleaner *Ford 7.3 Powerstroke x 4

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